News

Treasury, October 26, 2015: By Joseph Kipkoech
Diaspora remittance to developing countries, are projected to rise to $435 billion in 2015, a two per cent increase from previous year, the World Bank has said.
The bank however said the growth rate remittances would fall from 3.3 per cent in 2014 to two per cent in 2015.

National Treasury Cabinet Secretary Mr. Henry Rotich wants the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) to be more proactive in protecting consumers in the financial sector.
Mr. Rotich who spoke in the wake of mounting spotlight on CMA and CBK over failure to deal with trouble at Imperial Bank before it went under while the two regulators had made progress in enhancing market supervision, said they need to enhance their vigilance.

The Central Bank of Kenya (CBK) has reassured the placement of mid-tier Imperial Bank under receivership would not affect the banking industry.
Governor, Dr. Patrick Njoroge said the lender, which has locked more than Kshs.58billion of customers’ deposits, represents about 1.8 per cent of the sector, and should not be a matter of concern.
The banking sector, he insisted yesterday, is “safe and robust”.

Treasury, October 26, 2015: By Joseph Kipkoech
Narok, Machakos, Mombasa, Nairobi, Kericho and Nakuru are amongst some of the small number of counties which have reported significant amounts of locally generated revenue. One of the main reasons for this is that a number of counties do not enjoy the kind of economic activity that is easy to profitably tax. Another reason is that counties have not yet won the trust and respect of their people – in some cases because they have not even tried.

The government has announced a new raft of austerity measures as it attempts to restore stability in the country’s finances.
National Treasury Cabinet Secretary Mr. Henry Rotich said the fresh measures would include cutting back on non-crucial budget allocations in key State departments, freezing non-essential spending and also pushing the taxman to enhance revenue collection.
Mr. Rotich said the move would ease widespread concerns about the country’s public finances by reducing the fiscal deficit and putting the economy on the right path to recovery.

Kenya’s shilling was steady and traders said the currency will be boosted by dollar inflows from offshore investors attracted by the high interest rates on the government Treasury bills.
At 10.23 a.m. last Friday, the 9th of October 2015, commercial banks quoted the shilling at 103.05/15 to the dollar, compared to Thursday’s close at 103.00/10.
A senior trader at one commercial bank said: “It’s very stable, though the high government security yields are attracting (dollar) inflows, but demand remains subdued for now”.

Treasury, October 26, 2015: By Joseph Kipkoech
The Central Bank of Kenya (CBK) has said it was offering Sh10 billion in reverse repos because liquidity was “skewed.”
The CBK also offered reverse repos on Wednesday last week, the first since August last year, contrary to the bank’s recent monetary tightening stance. Traders said the Central Bank may be seeking to help smaller lenders, who have found it difficult to borrow from larger counterparts after the seizure of Imperial Bank – a second – tier lender – last week.
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Landlords from the Mt. Kenya region have up to December to declare their rental income with Kenya Revenue Authority (KRA) or face tough penalties.

Central Kenya region KRA Chief Manager Mr. Wilfred Okemwa has said landlords who voluntarily provide the information before the deadline will not be fined.
He urged landlords to comply with the law and take advantage of the amnesty given.  Mr. Okemwa spoke at East Africa Paper Mills in Thika, Kiambu County, at a function to recognize the company for being one of the best taxpayers in the region.
“We are determined to create a favourable environment for taxpayers.  Therefore Kenyans and all investors should be loyal to the country and pay their taxes without being pushed to do so for the sake of economic development in our country”, he said.
KRA has been awarding outstanding taxpayers this month.  Mr. Okemwa urged investors and Kenyans to change their attitude towards the taxman, saying the authority is committed to having a cordial relationship with taxpayers.
The iTax has made filing returns efficient and effective and it will soon bring an end to long and tiresome queues at the KRA offices, he said.  East African Paper Mills finance manager Sanjay Amin thanked KRA for recognizing the firm.

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Uchumi Supermarkets has closed operations in Uganda and Tanzania to stem further losses.

Uchumi Chief Executive Officer (CEO) Dr Julius Kipng’etich, said while the outlets make up 4.75 per cent of the retail chains operations, they account for 25 per cent of operating costs.
“The two subsidiaries have not made any profits over the last five years which means they have been draining parent operations,” said Dr Kipng’etich.

The Unclaimed Financial Assets Authority (UFAA) Africa summit has been rescheduled for April 2016, according to organisers.
Initially scheduled for October 28 to 30, it has been moved to April 27 to 29 due to what the Unclaimed Property Assets Register Kenya (UPAR) described as unavoidable circumstances.
UPAR chief executive and summit director Mr Joe Ngigi said the institution will instead conduct stakeholder trainings on October 28.

The Kenya Revenue Authority (KRA) has issued Makueni County with a tax compliance certificate.
Speaking while issuing the certificate on Friday, the 16th October, 2015 KRA Machakos station manager in charge of domestic taxes Mr. Aineah Ochieng said Makueni is among few tax compliant counties.
Mr. Ochieng said KRA has issues with several county governments over remittance of PAYE deduction. “We have challenges with some counties’, he said.

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The government has released Sh11.2 billion for the free primary and subsidised secondary education programmes.
Sh3.2 billion of the money released yesterday would go towards free primary education while Sh8 billion would be spent on subsidised secondary education.

The government targets to collect over Ksh 1.3 trillion this financial (2015/16) through the Kenya Revenue Authority (KRA).
National Treasury Cabinet Secretary Mr Henry Rotich said the performance of the revenue collection by KRA will be underpinned by the on-going reforms in tax policy and administration.
“KRA is expected to institute measures to expand the revenue base and minimize tax leakages,” said Mr Rotich.
The Cabinet Secretary was speaking yesterday at Kenyatta International Convention Centre (KICC) during the KRA taxpayers day.

The Central Bank of Kenya (CBK) has planned to mop up Kshs.12 billion in excess liquidity from the money markets.
The bank uses the term auction deposits and repurchase agreements to absorb the liquidity, which makes it costlier for banks to hold dollars and helps to support the shilling.

DSC 8292According to the National Treasury, Integrated Financial Management Information System (IFMIS) is an automated system used for public financial management that interlinks planning, budgeting, expenditure management and control, accounting, procurement, audit and reporting. E-procurement is a component of IFMIS whose usage is submission and evaluation of procurement applications.

The Kenya shilling strengthened further on a steady inflow of dollars to be used for buying the country’s high-yielding government debt.
At 10.05am yesterday, commercial banks posted the shilling at 101.80/102.00 to the dollar, tightening up from Wednesday’s close of 102.00/10.
“We have seen huge interest in the government securities from offshore investors,” said a trader at one Nairobi-based commercial bank.

Kenya Revenue Authority (KRA) is considering integrating more small and micro-entrepreneurs into the tax base by fast tracking absorption during licensing by country governments.
The move, which will net business people when paying for registration or renewal of licenses, is expected to deepen the tax base and help the taxman meet its tax target, which is currently short of.
KRA collected Kshs.1 trillion against a projection of Kshs.1,086 trillion in the 2014-15 budget in what is said to be the slowest growth in the last decade.

In Kenya, the constitution dictates that the public must be part of the budget-making process, and this is therefore promoting public participation in the national exercise.
With this year’s national Budget standing at over 2.2 trillion, greater oversight is required by Parliament to ensure taxpayers get value for every cent and citizens’ priorities are well captured in the budget process.
By doing so, the public will receive sufficient budget information to enable them to understand and influence the usage of taxes.  The substantial budget information will also enable the citizens to engage effectively in the budget process.

The Kenyan shilling strengthened to a two-month high, boosted by dollar inflows into local stocks and bonds from investors abroad.
At the close of trade on Monday, Commercial banks posted the shilling at 102.10/20 per dollar, up from 102.40/50 at last Friday’s close, its strongest level since August 17.

The shilling has held steady with the local currency supported by dollars inflows to be used for purchase of Kenya’s high-yielding government debt.
At 10.10 am yesterday, commercial banks posted the shilling at 103.20/30 to the dollar, unchanged from Wednesday’s close.